Full question:
This question has two parts and concerns Medallion Signature Guarantees. My mother died recently, naming me and my brother as beneficiaries on her annuities and successor trustees on her trusts. (1.) I was asked to fill out a form by the annuity company to continue to receive annuity payments. This form required a signature guarantee. The bank would not do this until I 'proved' that my mother in fact had an account with the annuity company. I told them that this was stupid: If my mother didn't have an account,the company wouldn't send any money, since the form was to be returned to them for processing. Yet the bank kept insisting that those are the rules for the Medallion Signature Guarantee. Who's right? (2.) I spoke to a mutual fund company where my mother held an account as trustee. They told me that to claim the assets, I needed to write them a letter explaining that I was a successor trustee, etc. and have it signature guaranteed. I asked whether they wanted me to submit a copy of the trust.They said no; when your bank guarantees your signature, they are also guaranteeing that everything in your letter is correct. This also seems dubious: Why would a bank want to take responsibility for something like this since the mutual fund account has nothing to do with them? Again, who's correct?
- Category: Trusts
- Date:
- State: Washington
Answer:
A Medallion Signature Guarantee is a special signature guarantee used in the transfer of securities. It is a guarantee by the transferring financial institution that the signature is genuine and the financial institution accepts liability for any forgery. Signature guarantees protect shareholders by preventing unauthorized transfers and possible investor losses. They also limit the liability of the transfer agent who accepts the certificates. They are offered through a financial firm like a broker, bank, or credit union that participates in one of the following Medallion Guarantee programs:
* STAMP - Securities Transfer Agents Medallion Program
* SEMP - Stock Exchange Medallion Program
* MSP - New York Stock Exchange, Inc. Medallion Signature Program
The following are from the GUIDELINES OF THE SECURITIES TRANSFER ASSOCIATION:
5.07 Transfer by Successor Trustee. Transfer requires:
(a) endorsement by successor trustee(s) (with acceptable medallion
signature guarantee) plus a court order or court certificate naming
the successor trustee; or
(b) a court order authorizing the transfer.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
